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You can achieve Negative Churn, which means you are adding MRR at a faster pace than you are losing it.

InsightSquared

More SaaS + Software Stats

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

54% treat upselling and add-on sales as high priority

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

How To Make Pricing A Constant Process In Your Organization

More Growth Strategy Stats

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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